Arch Coal Downgraded by Goldman Sachs Group Inc. to “Sell” (ACI)
Arch Coal (NYSE:ACI) was downgraded by research analysts at Goldman Sachs Group Inc. from a “neutral” rating to a “sell” rating in a report released on Friday, TheFlyOnTheWall.com reports. They currently have a $3.00 price target on the stock, down from their previous price target of $4.00. Goldman Sachs Group Inc.’s price objective indicates a potential downside of 33.77% from the stock’s previous close.
The analysts wrote, “We assume coverage of Arch Coal (ACI) at Sell, with a 6-month price target of $3, implying a -33% return vs. 7% for our coverage group. We are downgrading to Sell from Neutral given: (1) among the highest leverage ratios and lowest returns under our coverage, (2) valuations near historical peak levels, (3) a thermal outlook less bullish than consensus, as coal plant retirements and relatively low PRB pricing will likely weigh on earnings and (4) below-average earnings growth, even if met coal prices recover above our forecasts.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Arch Coal (NYSE:ACI) in a research note to investors on Thursday. They now have a $4.75 price target on the stock. Separately, analysts at Macquarie initiated coverage on shares of Arch Coal (NYSE:ACI) in a research note to investors on Friday, September 6th. They set a “neutral” rating on the stock. Finally, analysts at FBR Capital Markets initiated coverage on shares of Arch Coal (NYSE:ACI) in a research note to investors on Wednesday, August 28th. They set an “outperform” rating and a $6.00 price target on the stock. Four research analysts have rated the stock with a sell rating, ten have given a hold rating and three have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus target price of $5.33.
Arch Coal (NYSE:ACI) traded down 3.88% during mid-day trading on Friday, hitting $4.3543. The stock had a trading volume of 4,863,391 shares. Arch Coal has a one year low of $3.47 and a one year high of $8.86. The stock’s 50-day moving average is $4.65 and its 200-day moving average is $4.68. The company’s market cap is $924.2 million.
Arch Coal (NYSE:ACI) last issued its quarterly earnings data on Tuesday, July 30th. The company reported ($0.29) earnings per share for the quarter, beating the analysts’ consensus estimate of ($0.33) by $0.04. The company had revenue of $768.30 million for the quarter, compared to the consensus estimate of $923.40 million. During the same quarter last year, the company posted ($0.10) earnings per share. Arch Coal’s revenue was down 20.6% compared to the same quarter last year. Analysts expect that Arch Coal will post $-1.27 EPS for the current fiscal year.
Arch Coal, Inc (NYSE:ACI)is the coal producer.
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